Stock Market Synopsis — November 20, 2012

Goodfellow LLC is a website where stock portfolio investors find excellent stock ideas which have outperformed market averages.  (See the most recent weekly model portfolio results here and here.)  Any investor may visit the website to read stock market articles, but only subscribers have access to the articles which discuss and recommend specific stocks.  Join us!  Subscribe today!

* * * * *

Looking at the chart on the Dow, we see the exact same price drop & recovery pattern that took place at the end of the springtime market correction this past May.  At that time, the market average reached highs not seen since May ’08, had a pullback, then one last spike downward before beginning the next leg up.

From there, the Dow continued climbing, again reaching highs not seen since Dec. ’07/Jan. ’08.  Then a pullback in late October followed by a final price drop after the November election.

What I anticipate from here, barring unforeseen market interruptions, is that the Dow will return to 13,200-13,300 relatively quickly, then bounce a couple times around 12,900.  (I expect that the S&P 500 index would follow a similar trading pattern, which is why I don’t mention both averages in every sentence.)

Another key indicator for me that this post-election drop is part of a normal correction, and not a market breakdown, is that only 1-2 of the stocks I follow  and recommend have recently fallen through support levels.  To me, that shows a lot of market strength.

Take action:  Now is the time to continue accumulating good growth stocks which you’d like to own during the next stock market run-up.  And listen up:  the last week in December is almost always a very good week in the market.  So if you think you’re going to do some pruning and sowing in your portfolio, don’t wait until early January to “get a good start on the year”.  Subscribe now to find excellent stock ideas!  You will want everything in place by about December 20.

Happy investing!

Crista Huff

Goodfellow LLC

* * * *

Investment Disclaimer

Release of Liability: Through use of this website viewing or using you agree to hold and its employees harmless and to completely release and its employees from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.

Goodfellow LLC and its employees are not paid by third parties to promote nor disparage any investment. Recommendations are based on hypothetical situations of what we would do, not advice on what you should do.

Neither Goodfellow LLC nor its employees are licensed investment advisors, tax advisors, nor attorneys. Consult with a licensed investment advisor and a tax advisor to determine the suitability of any investment.

The information provided herein is obtained from sources believed to be reliable but is not guaranteed as to accuracy or completeness. When information is provided herein from third parties — such as financial news outlets, financial websites, investment firms, or any other source of financial information – the reliability or completeness of such financial information cannot be guaranteed.

The information contained on this website is provided for informational purposes only and contains no investment advice or recommendations to buy or sell any specific securities. This is not an offer or solicitation for any particular trading strategy, or confirmation of any transaction. Statements made on the website are based on the authors’ opinions and based on information available at the time this page was published. The creators are not liable for any errors, omissions or misstatements. Any performance data quoted represents past performance and past performance is not a guarantee of future results. Investments always have a degree of risk, including the potential risk of the loss of the investor’s entire principal. There is no guarantee against any loss.

* * * *

Goodfellow LLC is a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. See disclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.

Leave a Reply

Your email address will not be published. Required fields are marked *